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National Bank of Canada issues its inaugural Panda Bond in Mainland China

MONTREAL, Nov. 3, 2016 /CNW Telbec/ - National Bank of Canada is pleased to announce today, following a successful investor road show in Beijing and Shanghai, that it has issued a first tranche of its Panda Bond program raising RMB3.5 billion (approximately CAD690 million) in Mainland China's public bond market. The bond was priced at an annual coupon rate of 3.05% and has a three-year term. This is a successful and oversubscribed issuance with the help of National Bank of Canada's appointed joint lead underwriters and bookrunners, namely China Merchants Securities Co. Ltd. Standard Chartered Bank (China) Limited, Agricultural Bank of China Limited, Industrial and Commercial Bank of China Limited and Bank of China Limited.

On September 23, 2016, People's Bank of China authorized National Bank of Canada to establish a bond program to issue up to RMB5 billion (approximately CAD1 billion), in the form of bonds commercially known as Panda Bonds.

National Bank of Canada, one of the six banks of systemic importance in Canada, becomes the first financial institution in North America to access one of the largest capital markets in the world. It is the first Canadian bank to receive a AAA rating from a Mainland China credit rating agency, China Chengxin International Credit Rating Co. Ltd.

This issuance represents an important milestone in China's Renminbi and capital markets' internationalization. National Bank of Canada's Panda Bond is beneficial to further promoting cooperation in the Canada-China financial area and to deepening economic and trading relationships between the two countries.

Quotes:

Denis Girouard, Executive Vice-President – Financial Markets and Member of the Office of the President: "As the leading Canadian Bank in government and infrastructure finance in Canada, National Bank of Canada has demonstrated an in-depth understanding of global financial markets. With this inaugural bond offering, our team is proud of breaking into new frontiers. Panda Bonds represent a new diversified funding source and will help us in supporting Canadian companies doing business in China and bilateral investment flows".

Vincent Joli-Coeur, Vice-Chairman – Financial Markets: "We have been impressed by the rigorous and transparent process led by People's Bank of China and Chinese governmental entities throughout our application. We are thankful to the relevant authorities for helping us to become the first North American bank to access the Mainland China RMB bond market and it is an honour that our Panda Bond program approval has been announced by Premier Li Keqiang during his official visit to Canada in September 2016".

Caution Regarding Forward-Looking StatementsThis press release includes certain forward-looking statements. These statements are inherently subject to significant risks, uncertainties and changes in circumstances, many of which are beyond the control of the Bank, including risks relating to the timing and completion of any future issuance of RMB Panda Bonds by National Bank of Canada. Except as required by law, the Bank does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time, by it or on its behalf. The forward-looking information contained in this press release is presented for the purpose of interpreting the information contained herein and may not be appropriate for other purpose.

About National Bank of CanadaWith $230 billion in assets as at July 31, 2016, National Bank of Canada, together with its subsidiaries, forms one of Canada's leading integrated financial groups. The Bank has close to 22,000 employees and is widely recognized as a top employer. The Bank's securities are listed on the Toronto Stock Exchange (TSX: NA). Follow the Bank's activities at nbc.ca or via social media such as Facebook, LinkedIn and Twitter.

SOURCE National Bank of Canada

For further information: (The telephone numbers provided below are for the exclusive use of journalists, other media representatives and shareholders.): Marie-Pierre Jodoin, Senior Manager, Public Affairs, National Bank of Canada, Tel.: 514-394-4209